Mortgage Banking/Servicing

Need better risk insights?

As a mortgage banker, you need to determine the right price for either buying or selling a pool of loans or the servicing rights to those loans. Alternatively, if you are a banker or servicer planning to securitize, you need to understand loan pricing at origination and identify which loans will contribute and/or detract from the overall quality of the pool. Regardless of the scenario, examining the projected value of a pool of loans is essential, resting largely on whether the underlying loans will perform, outperform or underperform.

At AD&Co, we can help. Our products help value how a pool of loans will perform taking into account risk resulting from borrower behavior and macroeconomic issues. By using loan-level data, we combine our industry tested credit and prepayment models, interest-rate models, home-price models and proprietary analytics to evaluate risk and forecast values.

Supported by our experienced client service team that is available to address any concerns, our products help you:

  • Evaluate opportunities to buy or sell pools of loans (servicing retained or servicing released)

  • Project loan-level and pool-level values

  • Determine servicing values, including both overvalued and undervalued servicing rights in the market

  • Conduct hedging strategies

  • Run overall risk management

Tools you can use

LoanDynamics logoLoanDynamics (LDM) offers prepayment, default and loss severity on a pool of loans and how changes in interest rates and home prices will impact loan values. Trusted across the mortgage industry to forecast borrower behavior, LoanDynamics helps to manage asset liability and forecast credit loss to perform dependable valuations and scenario analyses. It also as supports secondary marketing. LoanDynamics is available through a variety of third-party vendors including Black Knight, which offers CompassPoint, an industry leading MSR valuation tool.

LoanKinetics logoLoanKinetics (LK) is our proprietary application that evaluates the inherent risk, value and performance in a loan, relative to other loans. Built on our LoanDynamics and MacroDynamics models, it can also perform traditional stochastic and user-defined scenario analyses. LoanKinetics users also benefit from access to full documentation on our analytics and models, including regular assessments on model performance, as well as our Model Updates and Pipeline articles where we report on model adjustments. LoanKinetics is available directly from AD&Co.

MSRKinetics logoMSRKinetics (MSRK) allows you to assess the value and risk inherent in a mortgage servicing rights (MSR) portfolio —including, but not limited to, interest rate risk. It allows you to project the effectiveness of hedging with TBAs. MSRK is powered by our LoanDynamics Model (LDM) and OAS Subroutine, and is integrated with our MSR-specific cash flow engine. It is available as a direct license from AD&Co.

RiskProfiler logoRiskProfiler (RP) is our comprehensive valuation solution that evaluates the inherent risk in mortgage backed securities by incorporating standard and advanced valuation techniques. It is the only application that brings together all of our proprietary LoanDynamics Model, MacroDynamics Models, and OAS Subroutine into a single, flexible platform to effectively capture risk. As a database-driven front end-user valuation system, RiskProfiler offers built-in reporting, parallel and distributed (cluster) computing and has the capability to store positions and past performance. It is available directly from AD&Co.

Insights that can help you
Contact our Client Support Team for access
The S-Curve: AD&Co's blog

Subscribe to our blog for news that affects you, including product updates, industry events and our latest research.

Mortgage Analysis & Reporting System (MARS)

MARS Performance Reports compare our model predictions against actual market experience to help evaluate the robustness of our model projections